Subscribers: Click here to access the full Foreign Exchange Survey
Deutsche Bank is confirmed to have the largest share of the global foreign exchange markets.
The foreign exchange sector is consolidating fast. Soaring trading volumes are being handled by an increasingly small number of players. Volume and market share are crucial to making big profits in a market with such highly compressed spreads. And while major banks focus on securing a place in the top tier, smaller firms are left to contemplate a choice between white labelling and finding a profitable niche market.
With 4,492 replies from a wide range of wholesale FX clients, this year's poll provides valuable insight into the top banks' strategies. Treasurers, senior executives and research analysts worldwide rated the banks they use to conduct their currency transactions in terms of both transaction volumes and quality of service.
Deutsche increased its share of trading volumes to 16.72% of all trades, up from 12.18% in 2004. Last year's winner, UBS, slipped to second place despite increasing its overall market share to 12.47%. Citigroup retained its hold on third place but there were strong performances from HSBC, Barclays Capital and Merrill Lynch who finished 4th, 5th and 6th overall respectively.
In terms of trading volume by type of institution, Citigroup was the leading counterparty for non-financial corporations, UBS for real money accounts and Deutsche Bank for banks and leveraged funds.
The top 10 FX houses by market share are as follows:
| Market share |
| 2005 |
2004 |
Bank |
MarketShare |
Market share increase |
| 1 |
2 |
Deutsche Bank |
16.72% |
4.54% |
| 2 |
1 |
UBS |
12.47% |
0.11% |
| 3 |
3 |
Citigroup |
7.50% |
-1.87% |
| 4 |
5 |
HSBC |
6.37% |
1.48% |
| 5 |
7 |
Barclays |
5.85% |
1.77% |
| 6 |
10 |
Merrill Lynch |
5.69% |
2.20% |
| 7 |
4 |
JPMorgan Chase |
5.29% |
-0.49% |
| 8 |
6 |
Goldman Sachs |
4.39% |
-0.15% |
| 9 |
11 |
ABN Amro |
4.19% |
1.00% |
| 10 |
13 |
Morgan Stanley |
3.92% |
1.00% |
Source: Euromoney FX Survey 2005
Deutsche Bank narrowly beat UBS to become the leading e-trading proprietary platform. FXall is the leading multi-bank or independent platform, with a market share of more than 50%.
If you are a subscriber and wish to access the full 2005 Foreign Exhange survey please click here.
If not, subscribe to Euromoney magazine and access the full results of the 2005 FX survey. Find out:
- which banks have boosted their market share... and how
- whose e-commerce investment is paying off
- which firms are considered the best in research and analytics
- which banks have the greatest market share with client groups such as corporates, institutions, banks and hedge funds
Plus - read our analysis, with comments from some of the most senior foreign exchange bankers in the world. Discover how the top banks in the industry are adapting to new challenges and opportunities in this rapidly evolving market.
